After 5 years of a near zero interest rate policy the Bank of Japan today, Friday 14th July 2006, decided to raise interest rates by 0.25%. The central Bank made this announcement today stating the decision was unanimous and had been arrived at only after two days of meetings.

When BOJ board member Hidehiko Haru said on June 1st 2006 he expected the zero interest rate policy to stay in place for some time to come. I really felt that meant more than 5 weeks. Still this is a well predicted interested rate hike and has been on the cards for some time. One may say it is even a little late.

We will do our best to keep you informed of news related to this subject as it comes to hand.